user
Plase answer the following request: Explain the difference between monopoly and imperfect competition.
Answer:
assistant
Monopoly is a market structure where one firm controls all or most of the market for a particular good or service. This firm can set prices, production levels, and outputs, however faces no real competition. Imperfect competition is any market structure which does not possess the characteristics of a perfect competition which are; large number of firms, identical products, freedom of entry and exit, and perfect knowledge. Imperfect competition can exist in either oligopoly or monopolistic markets. Oligopoly is when there are few firms, they likely produce differentiated products, the entry and exit of firms is not free and the players have some but not perfect knowledge.